I hated to have to break this disappointing news to the shivering PS3 fanboys camped out in the cold and wet at my local Best Buy, but somebody had to do it:
As it turns out, gamers who own older HD sets that feature only 480i, 480p, and 1080i resolution input capabilities will have to settle for the display quality being downsized as the game boots in its 480p mode rather than upscaling the image from its more desirable 720p mode to the TV's 1080i. We tested this development on older HDTV sets with games designed for 720p but not 1080i -- Resistance: Fall of Man, NHL 2K7, Tiger Woods PGA Tour 07, and Need for Speed Carbon. Sure enough, the system downshifted all four titles to 480p rather than moving up to 1080i.
The PlayStation 3's competitor, Microsoft's Xbox 360, does upscale 720p games to 1080i if the HD set supports the latter resolution but not the in-between and commonly-employed 720p resolution.
One guy countered (illogically) that he didn't care because 360 controllers are too big for Japanese hands. Apparently he still thinks we're wrasslin' with the Duke, although it might have been the hypothermia talking.